NAR sent a cease and desist letter to thPhoenix REALTORS® regarding its “MLS Choice” membership option. The message below is being shared with the Leadership Team, Board of Directors, Executive Committee, and state and local Association Executives.  

As of today, Phoenix REALTORS® continues to offer its “MLS Choice” membership option. “MLS Choice” allows non-REALTORS® to be members of Phoenix REALTORS®, in flagrant violation of NAR’s constitution and by-laws, which Phoenix REALTORS® agreed to abide by as a condition of being part of the REALTOR® organization.  

As a result, NAR has made the difficult but necessary decision to initiate the charter revocation process. NAR has no choice but to defend the REALTOR® trademark, our integrated model, and REALTORS® and consumers they serve. Without action, we put the benefits NAR members rely on—such as market research, business resources, a unified advocacy platform, and a single Code of Ethics— at risk. 

The charter revocation process, outlined here and summarized below, is a measure that we do not undertake lightly.

1. Given reasonable efforts to convince Phoenix REALTORS® of the need to comply with NAR’s Constitution and bylaws have failed, I as General Counsel have worked with our CEO, Nykia Wright, to provide this information and supporting documentation to President Sears.
   
   
2. President Sears will extend an invitation to Phoenix REALTORS® to meet with a panel of 3-5 members of the Executive Committee appointed by the President, to review its reasons for non-compliance.
   
   
3. If the panel agrees with NAR staff’s assessment, Phoenix REALTORS® will be given another deadline to comply.
   
   
4. If that deadline expires and Phoenix REALTORS® has not come into compliance, a “show cause” hearing would be conducted before a panel of 7-9 different members of the Executive Committee appointed by President Sears. The state association would be notified of the hearing, be provided with copies of all relevant documentation, and permitted, at its discretion, to submit a recommendation for consideration by the hearing panel.
   
   
5. If following the hearing the panel decides to revoke the association’s charter, the recommendation would be reported to the full Executive Committee for action. The Executive Committee would make the final decision on behalf of the Board of Directors. If that decision is to revoke the charter, the association’s territory would become unassigned and available.

There is no immediate impact to NAR members who are members of Phoenix REALTORS®. However, we are aware of the disruption this may cause them should the charter be revoked. As we complete these next steps, we will engage local members to ensure they are aware of the situation and the options available to them, including choosing another local association.

We will keep you updated throughout this process.

Sincerely,

Lesley Muchow

NAR General Counsel